Nation Media Group (NAI:NMG) ROIC % : -5.73% (As of Dec. 2023)

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What is Nation Media Group ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Nation Media Group's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -5.73%.

As of today (2024-06-23), Nation Media Group's WACC % is 9.52%. Nation Media Group's ROIC % is -5.73% (calculated using TTM income statement data). Nation Media Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Nation Media Group ROIC % Historical Data

The historical data trend for Nation Media Group's ROIC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Nation Media Group ROIC % Chart

Nation Media Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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7.90

0.26

4.86

1.92

-5.73

Nation Media Group Semi-Annual Data
	Dec08	Dec09	Dec10	Dec11	Dec12	Dec13	Dec14	Dec15	Dec16	Dec17	Dec18	Dec19	Dec20	Dec21	Dec22	Dec23
ROIC %	Get a 7-Day Free Trial											7.90	0.26	4.86	1.92	-5.73

Competitive Comparison of Nation Media Group's ROIC %

For the Entertainment subindustry, Nation Media Group's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Nation Media Group's ROIC % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Nation Media Group's ROIC % distribution charts can be found below:

* The bar in red indicates where Nation Media Group's ROIC % falls into.

Nation Media Group ROIC % Calculation

Nation Media Group's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROIC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-839.6 * ( 1 - 52.36% )	/	( (6854.2	+	7098.3)	/ 2 )
=	-399.98544	/	6976.25
=	-5.73 %

where

	Invested Capital		(A: Dec. 2022 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	12299.1	-	1689.3	-	( 3755.6	-	max(0, 3675.4	-	7953.6	+	3755.6	))
=	6854.2

	Invested Capital		(A: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	11803.5	-	1603.2	-	( 3102	-	max(0, 3588.1	-	7302	+	3102	))
=	7098.3

Nation Media Group's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2022 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-839.6 * ( 1 - 52.36% )	/	( (6854.2	+	7098.3)	/ 2 )
=	-399.98544	/	6976.25
=	-5.73 %

where

	Invested Capital		(Q: Dec. 2022 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	12299.1	-	1689.3	-	( 3755.6	-	max(0, 3675.4	-	7953.6	+	3755.6	))
=	6854.2

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	11803.5	-	1603.2	-	( 3102	-	max(0, 3588.1	-	7302	+	3102	))
=	7098.3

Note: The Operating Income data used here is one times the annual (Dec. 2023) data.

Nation Media Group (NAI:NMG) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROIC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Nation Media Group's WACC % is 9.52%. Nation Media Group's ROIC % is -5.73% (calculated using TTM income statement data).

Be Aware

Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Nation Media Group ROIC % Related Terms

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Nation Media Group (NAI:NMG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Nation Media Group PLC (NAI:NMG) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Kimathi Street, P. O Box 49010, Nation Centre, Nairobi, KEN, 00100

Website

https://www.nationmedia.com

Nation Media Group PLC is a media house in East and Central Africa. Its principal activities of the group are the publication, printing, and distribution of newspapers and magazines, radio and television broadcasting, and digital online products. It has businesses in television networks, film, and TV entertainment and delivers content on a multi-platform basis. Its operating segments are Newspapers & Digital and broadcasting. It generated the majority of its revenue from Newspapers & Digital segments that are engaged in the sale of newspapers, advertisements published in the newspapers, advertisements in the digital platforms, and subscriptions of e-paper.